|
With people's purchasing power expected to remain weak, major
retailers expect sales growth of about 17 percent this year, slightly
lower than the 20 percent recorded in 2006.
"We have calculated all the figures gathered from our members and have
come up with a sales growth target of 17 percent from about Rp 50.8
trillion (about US$5.64 billion) last year," Association of Indonesian
Retailers (Aprindo) chairman Handaka Santosa said on the sidelines of
the association's Retailers Day and Awards Presentation event in
Jakarta on Thursday.
Although 2007's projected sales growth will likely be lower than last
year, Handaka said that the sales target was still a very healthy one
for the retail industry.
"Last year, the retail sector contributed 20 percent to the country's
GDP," he said.
Handaka said that even though the macroeconomic indicators had improved
significantly, the impact on the real sector, particularly on the
people's buying power, was still minimal
"Last year, we targeted 20 percent growth from about Rp 42 trillion in
2005, and we almost met the target, being just little below 20 percent.
So, the 17 percent growth target for this year is quite realistic," he
said.
Another factor that could hamper the industry's growth was
interventionist local ordinances, such as the recent decree of the
Jakarta governor banning the opening of further minimart outlets in
Jakarta.
"The news came as a shock to us. We, in the association, were not even
notified or consulted about the decree," he said.
Handaka said that the association had not yet come up with an estimate
of the possible losses to the industry resulting from the decree.
However, new investment plans had to be postponed and many people would
be deprived of jobs as each minimart employed at least three staff.
The Jakarta administration claimed the restriction was essential as the
rapid spread of minimarts was threatening other small retail
businesses. With their stronger bargaining position, minimarts are able
to purchase goods at wholesale prices, and thus sell them at lower
prices than traditional retailers, the administration said.
Also speaking during the Aprindo awards ceremony, Trade Minister Mari
Pangestu said that the government was in the process of drawing up
legislation to create healthy competition among retailers, such as
hypermarkets, supermarkets, minimarts and traditional markets.
"We have been preparing a Presidential decree on modern markets for
one-and-a-half years now. It's not finished yet but I am optimistic
that we will finalize it this March," she said.
Mari argued that traditional markets would continue to have an
important role in the retail sector because, with their specific
characteristics, they were able to satisfy the needs of the majority.
"While it is true that the market share of traditional markets has
dropped from 80 percent to 75 percent, it is clear that most people
still prefer traditional markets," she said.
Receiving Aprindo awards were PT Matahari Putra Prima in the Best Sales
category, PT Indomarko for Best Total Stores, PT Sumber Alfarindo
Trijaya for Best Brand Equity and PT Carrefour Indonesia for Most
Innovative and Creative Marketing. In addition, Paulus Tumewu of PT
Ramayana received a Lifetime Achievement Award and Dani Hermawan
received a Lifetime Contribution Award.
|
